Saudi Arabia’s Capital Markets Authority issued a Board resolution imposing a SAR 20,000 fine on Middle East Healthcare Co. for breaching paragraph (6) of Article (63) of the Rules on the Offer of Securities and Continuing Obligations, after the company failed to disclose a material dispute to the CMA and the public immediately and without delay. The breach relates to a dispute with the Zakat, Tax and Customs Authority dated 26 December 2020 concerning the company’s objection to zakat and tax assessments for fiscal years 2015 through 2018. The disputed amount was estimated at SAR 156,858,311 and exceeded 5% of the company’s net assets based on its interim consolidated financial statements for the period ended 30 September 2020, which were the latest reviewed interim statements at the time. The company’s disclosure was limited to a later reference to the dispute in the notes to its consolidated annual financial statements for the year ended 31 December 2022.
Saudi Arabia Capital Markets Authority 2025-11-12
Saudi Arabia Capital Markets Authority fines Middle East Healthcare Co SAR 20,000 for delayed disclosure of zakat and tax dispute
Saudi Arabia's Capital Markets Authority fined Middle East Healthcare Co. SAR 20,000 for not promptly disclosing a material dispute with the Zakat, Tax and Customs Authority over assessments from 2015 to 2018. The dispute, totaling SAR 156,858,311, exceeded 5% of the company's net assets as per interim financial statements ending 30 September 2020. The company only mentioned the dispute in its annual financial statements for the year ending 31 December 2022.